MIAMI — Palm Beach County $1M and up single-family home sales rose in Q2 2024, according to statistics released by the MIAMI Association of Realtors (MIAMI) and the MIAMI Southeast Florida Multiple Listing Service (SEFMLS).
“The Palm Beach County lifestyle is attracting the world’s top firms and our new residents are building hedge-fund towers and bringing the best restaurants and shopping venues,” JTHS-MIAMI President Courtney Smitheman said.
Palm Beach County $600K to $1M Existing Condo Sales Climb in Q2 2024
Palm Beach County $1M and up single-family home sales increased 14.1% in 2Q 2024 to 1,075 transactions.
Palm Beach County $600K to $1M condo sales rose 1.7% year-over-year in Q2 2024 to 349 transactions. Palm Beach County $600K to $1M single-family home sales also increased, up 2.7% to 1,256 transactions in Q2 2024.
About Q2 2024 sales, Palm Beach County single-family homes declined 1% in Q2 2024, from 4,150 to 4,110. Palm Beach County condo transactions decreased 14.3%, from 3,698 in Q2 2023 to 3,168 in Q2 2024.
In June 2024, Palm Beach County total sales decreased 18.8% year-over-year, from 2,632 to 2,137. Single-family home sales declined 11.1%, from 1,428 to 1,269. Condo sales declined 27.9% in June 2024, from 1,204 to 868.
The decline is due to elevated mortgages rates and a lack of inventory, especially below $600,000. Also, there is the unknown regarding the upcoming presidential election and new state regulatory condominium building changes that go into effect in 2025. Senate Bill 4-D mandates comprehensive structural safety inspections and the establishment of structural integrity reserve studies for buildings three stories or taller.
MIAMI Chief Economist: Interest Rates Poised to be Below 6% by End of 2025
Mortgage rates are poised to decrease as many expect an upcoming Federal Reserve rate cut with signs that the U.S. economy could be slowing down.
“Higher interest rates took a toll on home sales in the first half of the year except in Miami-Dade County which has seen continued strong migration from high-income movers and job growth that has outpaced the nation,” MIAMI REALTORS® Chief Economist Gay Cororaton said. “I expect a broader recovery in the second half of the year. The housing market downturn has reached its end, with interest rates poised to continue to decline to below 7% for the remainder of the year and below 6% by end of 2025.”
According to Freddie Mac, the 30-year fixed-rate mortgage 6.77% as of July 18. That’s down from 6.89% one week ago and 6.78% one year ago.
Migration Bolstered South Florida’s Household Income by $10 Billion
Migration bolstered Southeast Florida’s aggregate household income by at least $10 billion in 2022, according to a new Miami Association of REALTORS® (MIAMI) analysis of the recently released Internal Revenue Service migration data.
In Miami-Dade County, the average adjusted gross income of households who moved to the county (total adjusted gross income of movers divided by number of tax returns) was $175,600, which is 78% higher than the average income of households who left the county ($98,800) and 79% higher than the income of households who lived in the same county ($98,100).
Miami ranks No. 1 in the U.S. in luxury residential market price growth, via Knight Frank’s 2024 Wealth Report. The same publication also ranked Miami among the Emerging Wealth Hubs. Miami is also ranked the No. 4 U.S. City for Millionaire Growth Rate over the Past Decade (75% increase), according to Henley & Partners and New World Wealth 2024 report.
Palm Beach County Inventory is Still Down 27.8% From Historical Average
Total inventory is down 27.8% from the historical average for Palm Beach County. The monthly historical average for Palm Beach County existing inventory is 16,196 and current inventory is at 11,692.
Total active listings at the end of June increased 64.9% year-over-year, from 7,089 to 11,692.
Inventory of single-family homes increased 47.8% year-over-year in June 2024 from 3,497 active listings last year to 5,170 last month. Condominium inventory increased 81.6% year-over-year from 3,592 to 6,522 listings during the same period in 2023.
Months’ supply of inventory for single-family homes is 4.5 months, which indicates a seller’s market. Inventory for existing condominiums is 7.1 months, which indicates a balanced market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory registered at the end of June was 1.32 million units, up 3.1% from May and 23.4% from one year ago (1.07 million). Unsold inventory sits at a 4.1-month supply at the current sales pace, up from 3.7 months in May and 3.1 months in June 2023. The last time unsold inventory posted a four-month supply was May 2020 (4.5 months).
Palm Beach County Price Appreciation Continues
Palm Beach County single-family home median prices increased 5.6% year-over-year in June 2024, increasing from $625,000 to $659,999. Existing condo median prices stayed even in June 2024 at $325,000.
Florida’s Live Local Act, which was passed in 2023 and amended in May 2024, is encouraging developers to build more affordable housing. The Live Local Act gives developers the highest density allowed in a local area if they allocate 40% of its units for affordable housing. The state law defines an affordable unit as being at or below 120% of an area’s median income.
Despite the increase in prices, South Florida remains a value in comparison to other global cities. In Miami, $1M nets you at least 60 square meters of prime property, according to the 2024 Knight Frank The Wealth Report. This is much higher than other global cities: Sydney, Australia ($1M only purchases 43 square meters), Shanghai (42), Paris (40), Los Angeles (38), New York (34), Geneva (34), London (33), Singapore (32), Hong Kong (22) and Monaco (16).
Palm Beach County Real Estate Posts $262 Million Local Economic Impact in June 2024
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).
The total economic impact of a typical Florida home sale is $123,000, according to NAR. Palm Beach County sold 2,137 homes in June 2024 for a local economic impact of $262 million.
Palm Beach County total dollar volume totaled $1.9 billion in June 2024. Single-family home dollar volume decreased 5.08% year-over-year to $1.4 billion. Condo dollar volume decreased 30.23% year-over-year to $462 million.
Palm Beach County Distressed Sales Remain Low, Reflecting Healthy Market
Only 0.7% of all closed residential sales in Palm Beach County were distressed last month, including REO (bank-owned properties) and short sales, lower than 0.6% in June 2023.
Short sales and REOs accounted for 0.09% and 0.6% year-over-year, respectively, of total Palm Beach County sales in June 2024.
Palm Beach County’s percentage of distressed sales are lower than the national figure. Nationally, distressed sales represented 2% of sales in June 2024, virtually unchanged from last month and the prior year.
Palm Beach County Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 23,183 in June 2024, down 11.1% year-over-year, while existing condo-townhouse sales totaled 8,339, down 20.5%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales completed transactions that include single-family homes, townhomes, condominiums and co-ops – receded 5.4% from May to a seasonally adjusted annual rate of 3.89 million in June. Year-over-year, sales also dropped 5.4% (down from 4.11 million in June 2023).
The statewide median sales price for single-family existing homes was $427,000, up 1.7% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $324,900, even with last year. The median is the midpoint; half the homes sold for more, half for less.
Nationally, the median existing-home price for all housing types in June was $426,900, an all-time high and an increase of 4.1% from one year ago ($410,100). All four U.S. regions registered price gains.
Palm Beach County Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 94.6% in June 2024. The median percent of original list price received for existing condominiums was 92.4%.
The median number of days between listing and contract dates for Palm Beach County single-family home sales was 35 days, up from 26 days last year. The median time to sale for single-family homes was 80 days, down from 73 days last year.
The median number of days between the listing date and contract date for condos was 46 days, up from 26 days. The median number of days to sale for condos was 89 days, up from 71 days.
Palm Beach County Cash Sales Nearly Double National Figure
Cash sales represented 49.9% of Palm Beach County closed sales in June 2024, compared to 51.4% in June 2023. About 28% of U.S. home sales are made in cash, according to the latest NAR statistics.
Cash buyers are not deterred by rising rates. The high percentage of cash buyers reflects South Florida’s top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash as well as some moving from more expensive U.S. markets who can buy more with their profits from real estate sales.
Cash sales accounted for 60% of all Palm Beach County existing condo sales and 43% of single-family transactions.
To access June 2024 Palm Beach County Statistical Reports, visit http://www.SFMarketIntel.com
Note: Statistics in this news release may vary depending on reporting dates. MIAMI reports exact statistics directly from its MLS system.
About the MIAMI Association of Realtors®
The MIAMI Association of Realtors (MIAMI) was chartered by the National Association of Realtors in 1920 and is celebrating 104 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents 60,000 total real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S. and has official partnerships with 260 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com
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